CPY Cpi Corp. Common Stock

Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/cpicorp/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Eastern District of Missouri on behalf of purchasers of CPI Corp. (“CPI”) (NYSE:CPY) common stock during the period between April 20, 2010 and December 21, 2011 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/cpicorp/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges CPI and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CPI is a holding company engaged, through its wholly owned subsidiaries, in selling and manufacturing professional portrait photography of young children, individuals and families and other related products and services.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. Defendants represented that the Company’s initiatives to grow the business were working, that it was well positioned for growth and that its stock was a “good investment” when it was trading at $22 per share. As a result of defendants’ false statements, CPI stock traded at artificially inflated prices during the Class Period, reaching a high of $31.91 per share on May 12, 2010.

On December 22, 2011, the Company announced its financial results for its third fiscal quarter ended November 12, 2011. The Company reported a net loss of ($7.25) million or ($1.03) diluted earnings per share for the third quarter and that net sales declined 11% to $95.0 million, due in significant part to the Company’s comparable store sales declines. The results also meant that CPI had failed its leverage ratio test for its revolving credit facility. CPI had to obtain an amendment to its credit agreement. As a result, CPI will have to stop its dividend. On this news, CPI stock collapsed $3.30 per share to close at $1.98 per share on December 22, 2011, a one-day decline of nearly 63%.

According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) CPI’s business was performing much worse than defendants acknowledged and was deteriorating; (b) CPI’s initiatives to grow the business were not working at the levels represented by defendants; (c) CPI’s stock was not a “good investment” and the Company’s stock buy-back was intended solely to project false confidence in the Company’s prospects; and (d) CPI’s cash flows would continue to deteriorate due to poor revenue growth such that CPI’s capital structure was not as strong as defendants represented.

Plaintiff seeks to recover damages on behalf of all purchasers of CPI common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site (http://www.rgrdlaw.com) has more information about the firm.

C P I (NYSE:CPY)
Historical Stock Chart
From Mar 2024 to Apr 2024

C P I (NYSE:CPY)
Historical Stock Chart
From Apr 2023 to Apr 2024